This consultative report explores policy issues for central banks that arise from current trends in retail payments markets. It puts forward four public policy goals for maintaining and promoting efficiency and safety in these markets. The goals are intended for central banks but may also be relevant for other public authorities with an interest in efficiency and safety in this area. The report also identifies a range of possible actions for central banks to further these goals, some of which are recommended as a minimum, suitable for all central banks.

Interested readers are invited to comment on any aspect of this report. The consultation period will last until 13 December 2002. The CPSS would, however, particularly welcome views and suggestions on the topics set out below in order to assist it in producing a final version of the report.

Topics on which comments would be particularly welcome:

Does the report correctly identify the main current trends in retail payments markets that have implications for the efficiency and safety of retail payment systems and instruments? Please describe any trends you regard as significant omissions.

Does the report analyse adequately the main policy issues that may arise for central banks from current trends in retail payments markets? Please describe any elements you regard as significant errors or omissions.

Are the four policy goals put forward in the report appropriate? If you regard any of the goals as inappropriate, please explain why. If, in your opinion, other goals would be appropriate, please describe and explain them.

Does the report identify an appropriate range of possible actions for central banks to further the public policy goals? Within the range, are the recommended minimum actions appropriate as a minimum practical contribution by all central banks? Are the further actions identified, beyond the minimum, appropriate for certain central banks to consider taking as a policy response in some market circumstances? If you regard any of the actions as inappropriate, please explain why. If, in your opinion, other possibilities should be included, please describe and explain them.

Does the report correctly identify the main means of making retail payments across national borders? Please describe any significant omissions. Does the report correctly identify the main trends in the market for cross-border retail payments and adequately analyse the implications for efficiency and safety in this market? Please supply any supplementary information that you regard as relevant to this identification and analysis. In particular, please supply any information that either corroborates or contradicts the anecdotal evidence cited in paragraph 4.3.1 about the size of the cross-border payments market.

Comments are invited until 13 December 2002 from all interested parties. They may be sent to the Committee on Payment and Settlement Systems, Bank for International Settlements, CH-4002 Basel, Switzerland; e-mail: cpss@bis.org; Fax: +41 61 280 9100.